Everest industry news

06 May 2008

New legislation is due to take effect this October allowing landlords to claim tax breaks for adopting energy saving measures in rental properties.

The Landlord's Energy Saving Allowance (LESA) will permit property owners to claim up to £1,500 per home against the cost of installing insulation and other fuel-saving steps.

The new law will effectively reduce landlord's taxable income if they opt for green improvements, delivering savings of up to £600 for those paying 40 per cent in tax.

National Landlords Association (NLA) experts are urging property owners with letting interests to take advantage of this new opportunity, while also helping to save the environment.

"The NLA encourages its members to invest in maintaining and improving the quality of their properties," said David Salusbury, chairman of the industry body.

"LESA is a welcome incentive for landlords to encourage them to make the necessary energy efficiency improvements," he continued.

"As well as contributing to the overall efforts by society to combat climate change, landlords may see an increase in the value of their investment as a result of energy efficiency improvements.

"We are pleased that the government has chosen to offer incentives to landlords instead of regulation and would urge landlords to use the tax break or, perhaps, risk losing it in the future."

Affordable green improvements include loft, floor and cavity wall insulation, as well as double glazing and draught proofing.